MILWAUKEE, Feb. 4, 2021 /PRNewswire/ -- WEC Energy Group
(NYSE: WEC) today reported net income of $1.20 billion, or $3.79 per share, for 2020. This compares to
earnings of $1.13 billion, or
$3.58 per share, for 2019.
For the fourth quarter of 2020, WEC Energy Group recorded net
income of $239.0 million, or
76 cents per share. This compares to
earnings of $243.9 million, or
77 cents per share, for the fourth
quarter of 2019.
"In a challenging year, we turned resilience into results for
our stockholders, our customers, and our communities," said
Gale Klappa, executive chairman.
"And our momentum should accelerate in 2021 as we execute our ESG
Progress Plan — investing in efficiency, sustainability, and
growth."
WEC Energy Group was recently recognized as one of America's
Most Responsible Companies by Newsweek and, during the fourth
quarter of 2020, We Energies was also honored for superior
reliability of its electric delivery network. This marks the tenth
consecutive year that We Energies has been named the most reliable
utility in the Midwest.
For the full year, retail deliveries of electricity — excluding
the iron ore mine in Michigan's
Upper Peninsula — decreased by 2.1 percent. Residential electricity
use rose by 5.5 percent.
Electricity consumption by small commercial and industrial
customers declined by 4.8 percent. Electricity use by large
commercial and industrial customers — excluding the iron ore mine —
dropped by 6.5 percent during 2020.
On a weather-normal basis for 2020, retail deliveries of
electricity — excluding the iron ore mine — fell by 2.9
percent.
Natural gas deliveries in Wisconsin, excluding gas used for power
generation, decreased by 7.9 percent during 2020. On a
weather-normal basis, natural gas deliveries were 2.4 percent lower
during the year.
At the end of 2020, the company was serving approximately 11,000
more electric customers and 27,000 more natural gas customers than
at the same time a year ago.
"Today, we are also reaffirming the company's 2021 earnings
guidance. We expect earnings to be in a range of $3.99 to $4.03 per
share — in line with our long-term objective of growing earnings at
a rate of 5 to 7 percent annually," Klappa said.
Earnings per share listed in this news release are on a fully
diluted basis.
Conference call
A conference call is scheduled for
1 p.m. Central time, Thursday, Feb. 4. The call will review 2020
earnings and the company's outlook for the future.
All interested parties, including stockholders, news media and
the general public, are invited to listen. Access the call at
877-683-2228 up to 15 minutes before it begins. The number for
international callers is 647-689-5446. The conference ID is
4783763.
Conference call access also is available at wecenergygroup.com.
Under 'Webcasts,' select 'Year-End Earnings.' In conjunction with
this earnings announcement, WEC Energy Group will post on its
website a package of detailed financial information on its 2020
performance. The materials will be available at 6:30 a.m.
Central time, Thursday, Feb. 4.
Replay
A replay will be available on the website and
by phone. Access to the webcast replay will be available on the
website about two hours after the call. Access to a phone replay
also will be available approximately two hours after the call and
remain accessible through Feb. 18,
2021. Domestic callers should dial 800-585-8367.
International callers should dial 416-621-4642. The replay
conference ID is 4783763.
WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation's premier
energy companies, serving 4.6 million customers in Wisconsin, Illinois, Michigan and Minnesota.
The company's principal utilities are We Energies, Wisconsin
Public Service, Peoples Gas, North Shore Gas, Michigan Gas
Utilities, Minnesota Energy Resources and Upper Michigan Energy
Resources. Another major subsidiary, We Power, designs, builds and
owns electric generating plants. In addition, WEC Infrastructure
LLC owns a growing fleet of renewable generation facilities in the
Midwest.
WEC Energy Group (wecenergygroup.com) is a Fortune 500
company and a component of the S&P 500. The company has
approximately 42,000 stockholders of record, 7,500 employees and
$37 billion of assets.
Forward-looking statements
Certain statements
contained in this press release are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
statements are based upon management's current expectations and are
subject to risks and uncertainties that could cause our actual
results to differ materially from those contemplated in the
statements. Readers are cautioned not to place undue reliance on
these statements. Forward—looking statements include, among other
things, statements concerning management's expectations and
projections regarding earnings and future results. In some cases,
forward—looking statements may be identified by reference to a
future period or periods or by the use of forward—looking
terminology such as "anticipates," "believes," "estimates,"
"expects," "forecasts," "guidance," "intends," "may," "objectives,"
"plans," "possible," "potential," "projects," "should," "targets,"
"will" or similar terms or variations of these terms.
Factors that could cause actual results to differ materially
from those contemplated in any forward—looking statements include,
but are not limited to: general economic conditions, including
business and competitive conditions in the company's service
territories; the extent, duration and impact of the COVID—19
pandemic or any future health pandemics; timing, resolution and
impact of rate cases and other regulatory decisions; the company's
ability to continue to successfully integrate the operations of its
subsidiaries; availability of the company's generating facilities
and/or distribution systems; unanticipated changes in fuel and
purchased power costs; key personnel changes; varying weather
conditions; continued industry restructuring and consolidation;
continued advances in, and adoption of, new technologies that
produce power or reduce power consumption; energy and environmental
conservation efforts; the company's ability to successfully acquire
and/or dispose of assets and projects; cyber—security threats and
data security breaches; construction risks; equity and bond market
fluctuations; changes in the company's and its subsidiaries'
ability to access the capital markets; the impact of tax reform and
any other legislative and regulatory changes, including changes to
environmental standards; political developments; current and future
litigation and regulatory investigations, proceedings or inquiries;
changes in accounting standards; the financial performance of
American Transmission Company as well as projects in which the
company's energy infrastructure business invests; the ability of
the company to obtain additional generating capacity at competitive
prices; goodwill and its possible impairment; and other factors
described under the heading "Factors Affecting Results, Liquidity
and Capital Resources" in Management's Discussion and Analysis of
Financial Condition and Results of Operations and under the
headings "Cautionary Statement Regarding Forward—Looking
Information" and "Risk Factors" contained in the company's Form
10—K for the year ended December 31,
2019, and in subsequent reports filed with the Securities
and Exchange Commission. The company expressly disclaims any
obligation to publicly update or revise any forward—looking
information.
Tables follow
WEC ENERGY GROUP,
INC.
|
CONSOLIDATED
INCOME STATEMENTS (Unaudited)
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31
|
|
December 31
|
(in millions,
except per share amounts)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Operating
revenues
|
|
$
|
1,933.4
|
|
|
$
|
1,947.5
|
|
|
$
|
7,241.7
|
|
|
$
|
7,523.1
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
657.5
|
|
|
693.0
|
|
|
2,319.5
|
|
|
2,678.8
|
|
Other operation and
maintenance
|
|
604.7
|
|
|
601.4
|
|
|
2,032.2
|
|
|
2,184.8
|
|
Depreciation and
amortization
|
|
249.3
|
|
|
236.2
|
|
|
975.9
|
|
|
926.3
|
|
Property and revenue
taxes
|
|
51.4
|
|
|
53.8
|
|
|
208.0
|
|
|
201.8
|
|
Total operating
expenses
|
|
1,562.9
|
|
|
1,584.4
|
|
|
5,535.6
|
|
|
5,991.7
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
370.5
|
|
|
363.1
|
|
|
1,706.1
|
|
|
1,531.4
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
transmission affiliates
|
|
43.0
|
|
|
15.9
|
|
|
175.8
|
|
|
127.6
|
|
Other income,
net
|
|
19.6
|
|
|
25.9
|
|
|
79.5
|
|
|
102.2
|
|
Interest
expense
|
|
117.9
|
|
|
127.2
|
|
|
493.7
|
|
|
501.5
|
|
Loss on debt
extinguishment
|
|
38.4
|
|
|
—
|
|
|
38.4
|
|
|
—
|
|
Other
expense
|
|
(93.7)
|
|
|
(85.4)
|
|
|
(276.8)
|
|
|
(271.7)
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
276.8
|
|
|
277.7
|
|
|
1,429.3
|
|
|
1,259.7
|
|
Income tax
expense
|
|
37.2
|
|
|
33.5
|
|
|
227.9
|
|
|
125.0
|
|
Net
income
|
|
239.6
|
|
|
244.2
|
|
|
1,201.4
|
|
|
1,134.7
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends of subsidiary
|
|
0.3
|
|
|
0.3
|
|
|
1.2
|
|
|
1.2
|
|
Net (income) loss
attributed to noncontrolling interests
|
|
(0.3)
|
|
|
—
|
|
|
(0.3)
|
|
|
0.5
|
|
Net income
attributed to common shareholders
|
|
$
|
239.0
|
|
|
$
|
243.9
|
|
|
$
|
1,199.9
|
|
|
$
|
1,134.0
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.76
|
|
|
$
|
0.77
|
|
|
$
|
3.80
|
|
|
$
|
3.60
|
|
Diluted
|
|
$
|
0.76
|
|
|
$
|
0.77
|
|
|
$
|
3.79
|
|
|
$
|
3.58
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
315.4
|
|
|
315.4
|
|
|
315.4
|
|
|
315.4
|
|
Diluted
|
|
316.5
|
|
|
316.7
|
|
|
316.5
|
|
|
316.7
|
|
|
|
|
|
|
|
|
|
|
Dividends per
share of common stock
|
|
$
|
0.6325
|
|
|
$
|
0.5900
|
|
|
$
|
2.5300
|
|
|
$
|
2.3600
|
|
WEC ENERGY GROUP,
INC.
|
CONSOLIDATED
BALANCE SHEETS (Unaudited)
|
|
December
31,
|
|
December
31,
|
(in millions,
except share and per share amounts)
|
|
2020
|
|
2019
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
24.8
|
|
|
$
|
37.5
|
|
Accounts receivable
and unbilled revenues, net of reserves of $220.1 and $140.0,
respectively
|
|
1,202.8
|
|
|
1,176.5
|
|
Materials, supplies,
and inventories
|
|
528.6
|
|
|
549.8
|
|
Prepayments
|
|
263.4
|
|
|
261.8
|
|
Other
|
|
63.4
|
|
|
68.0
|
|
Current
assets
|
|
2,083.0
|
|
|
2,093.6
|
|
|
|
|
|
|
Long-term
assets
|
|
|
|
|
Property, plant, and
equipment, net of accumulated depreciation and amortization of
$9,364.7 and $8,878.7, respectively
|
|
25,707.4
|
|
|
23,620.1
|
|
Regulatory
assets
|
|
3,524.1
|
|
|
3,506.7
|
|
Equity investment in
transmission affiliates
|
|
1,764.3
|
|
|
1,720.8
|
|
Goodwill
|
|
3,052.8
|
|
|
3,052.8
|
|
Other
|
|
896.5
|
|
|
957.8
|
|
Long-term
assets
|
|
34,945.1
|
|
|
32,858.2
|
|
Total
assets
|
|
$
|
37,028.1
|
|
|
$
|
34,951.8
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
debt
|
|
$
|
1,776.9
|
|
|
$
|
830.8
|
|
Current portion of
long-term debt
|
|
785.8
|
|
|
693.2
|
|
Accounts
payable
|
|
880.7
|
|
|
908.1
|
|
Accrued payroll and
benefits
|
|
174.0
|
|
|
199.8
|
|
Other
|
|
530.7
|
|
|
550.8
|
|
Current
liabilities
|
|
4,148.1
|
|
|
3,182.7
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
Long-term
debt
|
|
11,728.1
|
|
|
11,211.0
|
|
Deferred income
taxes
|
|
4,059.8
|
|
|
3,769.3
|
|
Deferred revenue,
net
|
|
412.2
|
|
|
497.1
|
|
Regulatory
liabilities
|
|
3,928.1
|
|
|
3,992.8
|
|
Environmental
remediation liabilities
|
|
532.9
|
|
|
589.2
|
|
Pension and OPEB
obligations
|
|
327.0
|
|
|
326.2
|
|
Other
|
|
1,229.4
|
|
|
1,128.9
|
|
Long-term
liabilities
|
|
22,217.5
|
|
|
21,514.5
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Common
shareholders' equity
|
|
|
|
|
Common stock – $0.01
par value; 325,000,000 shares authorized; 315,434,531 shares
outstanding
|
|
3.2
|
|
|
3.2
|
|
Additional paid in
capital
|
|
4,143.7
|
|
|
4,186.6
|
|
Retained
earnings
|
|
6,329.6
|
|
|
5,927.7
|
|
Accumulated other
comprehensive loss
|
|
(6.8)
|
|
|
(4.1)
|
|
Common
shareholders' equity
|
|
10,469.7
|
|
|
10,113.4
|
|
|
|
|
|
|
Preferred stock of
subsidiary
|
|
30.4
|
|
|
30.4
|
|
Noncontrolling
interests
|
|
162.4
|
|
|
110.8
|
|
Total liabilities
and equity
|
|
$
|
37,028.1
|
|
|
$
|
34,951.8
|
|
WEC ENERGY GROUP,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
|
|
Year
Ended
|
|
|
December
31
|
(in
millions)
|
|
2020
|
|
2019
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
|
1,201.4
|
|
|
$
|
1,134.7
|
|
Reconciliation to
cash provided by operating activities
|
|
|
|
|
Depreciation and
amortization
|
|
975.9
|
|
|
926.3
|
|
Deferred income taxes
and investment tax credits, net
|
|
209.4
|
|
|
162.9
|
|
Contributions and
payments related to pension and OPEB plans
|
|
(113.2)
|
|
|
(65.9)
|
|
Equity income in
transmission affiliates, net of distributions
|
|
(29.1)
|
|
|
(2.9)
|
|
Change in –
|
|
|
|
|
Accounts receivable
and unbilled revenues, net
|
|
16.1
|
|
|
98.2
|
|
Materials, supplies,
and inventories
|
|
21.2
|
|
|
(1.5)
|
|
Other current
assets
|
|
13.4
|
|
|
(7.1)
|
|
Accounts
payable
|
|
(61.3)
|
|
|
1.5
|
|
Other current
liabilities
|
|
(41.2)
|
|
|
78.7
|
|
Other, net
|
|
3.4
|
|
|
20.6
|
|
Net cash provided
by operating activities
|
|
2,196.0
|
|
|
2,345.5
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Capital
expenditures
|
|
(2,238.8)
|
|
|
(2,260.8)
|
|
Acquisition of
Blooming Grove Wind Energy Center LLC, net of restricted cash
acquired of $24.1
|
|
(364.6)
|
|
|
—
|
|
Acquisition of
Tatanka Ridge Wind LLC
|
|
(239.9)
|
|
|
—
|
|
Acquisition of
Upstream Wind Energy LLC, net of cash and restricted cash acquired
of $9.2
|
|
—
|
|
|
(268.2)
|
|
Capital contributions
to transmission affiliates
|
|
(21.2)
|
|
|
(52.6)
|
|
Proceeds from the
sale of assets and businesses
|
|
20.3
|
|
|
37.6
|
|
Proceeds from the
sale of investments held in rabbi trust
|
|
56.2
|
|
|
0.2
|
|
Purchase of
investments held in rabbi trust
|
|
(37.8)
|
|
|
—
|
|
Reimbursement for
American Transmission Company LLC's construction costs
|
|
1.1
|
|
|
32.4
|
|
Insurance proceeds
received for property damage
|
|
23.2
|
|
|
—
|
|
Other, net
|
|
(5.3)
|
|
|
16.5
|
|
Net cash used in
investing activities
|
|
(2,806.8)
|
|
|
(2,494.9)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Exercise of stock
options
|
|
43.8
|
|
|
67.0
|
|
Purchase of common
stock
|
|
(99.2)
|
|
|
(140.1)
|
|
Dividends paid on
common stock
|
|
(798.0)
|
|
|
(744.5)
|
|
Issuance of long-term
debt
|
|
2,373.6
|
|
|
1,895.0
|
|
Retirement of
long-term debt
|
|
(1,767.0)
|
|
|
(360.1)
|
|
Issuance of
short-term loan
|
|
340.0
|
|
|
—
|
|
Change in other
short-term debt
|
|
606.1
|
|
|
(609.3)
|
|
Payments for debt
extinguishment and issuance costs
|
|
(55.8)
|
|
|
(12.5)
|
|
Purchase of
additional ownership interest in Upstream Wind Energy LLC from
noncontrolling interest
|
|
(31.0)
|
|
|
—
|
|
Other, net
|
|
(11.4)
|
|
|
(9.9)
|
|
Net cash provided
by financing activities
|
|
601.1
|
|
|
85.6
|
|
|
|
|
|
|
Net change in
cash, cash equivalents, and restricted cash
|
|
(9.7)
|
|
|
(63.8)
|
|
Cash, cash
equivalents, and restricted cash at beginning of year
|
|
82.3
|
|
|
146.1
|
|
Cash, cash
equivalents, and restricted cash at end of year
|
|
$
|
72.6
|
|
|
$
|
82.3
|
|
View original
content:http://www.prnewswire.com/news-releases/wec-energy-group-posts-strong-2020-results-301221539.html
SOURCE WEC Energy Group